Diageo, born from the merger between the Irish company (obviously) Guinness and the British GrandMet, is one of the largest companies in the world operating in the alcoholic beverages market; it is among the hundred companies with the highest market capitalization on the London Stock Exchange.
In the past it sold Pillsbury to General Mills and the famous fast food chain Burger King in order to focus solely on the alcoholic beverages market.
They declare themselves a young company (founded only in 1997) compared for example to Justerini & Brooks (better known as J&B) absorbed into Diageo and founded in 1749!
200 facilities in 30 countries, 4000 employees…
Well-known brands in every sector: beer, vodka, gin, whisky, Tequila... labels you will certainly know such as Johnnie Walker, Smirnoff, Captain Morgan, Vat 69, Talisker, Baileys, Tanqueray, Guinness, J&B, Ciroc, Don Julio, Josè Cuervo, Ketel One, Bulleit, Zacapa, Coal Ila, Cardhu, Cragganmore, Harp, Killkenny, Oban, Pimm's, Red Stripe,…
What does this have to do with wine? Well in 2001, following the aforementioned exit from the Food sector, the company had made some acquisitions in our beloved sector; but things do not seem to have gone particularly well… Fifteen years later, in fact, Diageo completed the divestment of its investments in the wine world by selling Chalone Estate Vineyard, purchased in 2004 for 260 million dollars, to Foley Family Wines (for more details you can consult the pdf on the company's website).
This brings to an end a small era for the company that had already begun with the sale to Treasury Wine Estates of brands such as Percy Fox, Blossom Hill, Piat d'Or and Sterling Vineyards.
The justification for this move is not so much to be found in the -15% revenue figure for 2014, but rather in the company's desire, already expressed in the past, to dedicate itself to the spirits sector, divesting businesses deemed "non-core".
What do you think?
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